Pennsylvania Record

Saturday, October 19, 2019

Environmental Construction Services alleges minority owner diverted business to his own company

Federal Court

By Charmaine Little | Aug 19, 2019

Philadelphia federal courthouse

PHILADELPHIA – A Philadelphia engineering and contracting firm alleges a minority owner diverted work away from it to his own company and that it and its subsidiaries lost millions in profits as a result.

Environmental Construction Services Inc. (ECSI360), Element Mechanical Services LLC and Limbach360 LLC sued Dominc Menta and Environmental Control Services Inc. on Aug. 1 in the U.S. District Court for the Eastern District of Pennsylvania citing the Racketeer Influenced and Corrupt Organizations Act, the Lanham Act and other counts. 

Menta is a minority owner of ECSI360, and the other two plaintiffs are subsidiaries of ECSI360. The suit also states Menta owns and operates Environmental Control Services.

“Beginning as early as 2012 and continuing through the time of filing this complaint, Menta has repeatedly and successfully diverted work away from plaintiffs and to Environmental Control,” the suit states.

The plaintiffs allege Menta represented to third parties that the plaintiffs would be doing the work when it would actually be Environmental Control. The suit states this subsequently led to ECSI360 and Limbach360 to vie for jobs without knowing it while Environmental Control would do the work and get the money, all while using the plaintiffs' minority contractor. 

The plaintiffs also allege Manta stole trade secrets from ECSI360 and Element Mechanical and give them to competitors.

“This diversion of business to Environmental Control allows Menta to capture the entirety of the profits derived from the diverted projects without dividing them with the majority owner of ECSI360, Michael Brown,” the suit states.

For relief, the plaintiffs seek the court to order a permanent injunction against defendants to block them from using their trade secrets, and grant an award for the plaintiffs to be determined at trial, as well as any relief the court sees proper. The plaintiffs are represented by Edward S. Robson of Robson and Robson PC in King of Prussia.

U.S. District Court for the Eastern District of Pennsylvania case number 2:19-cv-03477

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U.S. District Court of Eastern District of Pennsylvania

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